Vital announces capital raising

Property investor and developer Vital Healthcare Property Trust plans to raise about $160 million of new capital to help pay down debt after acquisitions.

It recently bought properties in Australia and the Boulcott private hospital site in Lower Hutt.

The company will raise the funds by offering shareholders two new units for every nine they currently own at $2.08 each, a discount of more than 3 percent compared to the company's last traded price.

Its chief executive, David Carr, said the money would be used to pay debt, which would help it pursue more acquisitions in the future.

"The offer is underwritten by Forsyth Barr Group, but there is also sub-underwriters in place which is primarily institutional investors in New Zealand and Australia and we've had very good support from them," he said.